The Nigerian naira made a modest recovery against the U.S. dollar at the weekend, closing at N1,631.21 in the official Investor and Exporter (I&E) window.
This marks a 1.69 per cent appreciation from the previous day’s exchange rate of N1,659.26, even as market turnover saw a sharp decline.
The naira settled at N1,631.21 per dollar, an improvement from the prior day’s close of N1,659.26.
During trading, the naira fluctuated between a high of N1,679.00 and a low of N1,580.00, reflecting ongoing volatility.
The I&E window recorded $238.36 million in total turnover, a sharp 47 per cent decrease from the previous day’s $450.39 million.
In the parallel market, the naira also saw movement, opening at N1,669.49 and closing at N1,618.75, after fluctuating between N1,673.34 and N1,618.00 throughout the day.
The slight appreciation of the naira coincides with a stabilization in global crude oil prices, which presently hovers around $77 per barrel.
The recent rebound in oil prices is partly fueled by geopolitical tensions in the Middle East, particularly between Iran and Israel. This has raised concerns over potential supply disruptions, further strengthening oil futures.
Financial analyst, Uche Eze, emphasized that the naira’s performance is intricately tied to both global and domestic factors.
“While the recent appreciation is a welcome sign, the substantial drop in market turnover indicates there’s still a lack of confidence in the market. The key here is whether crude oil prices can sustain their upward trend and how the government handles foreign exchange policy. If we see more consistent oil revenues and strategic macroeconomic policies, the naira could continue to recover,” Eze noted.
Economic expert, Amina Bello, added that external reserves are crucial to stabilizing the currency. “Nigeria’s growing reserves provide a cushion that could stabilize the naira in the near term. However, the country needs to strengthen its non-oil revenue sources and foreign exchange policies to ensure sustained stability.”
